Now the North forges ahead: New figures show productivity boom

THE Northern Powerhouse is booming, as new figures show productivity in parts of the North is outstripping areas of London.

Liverpool City Centre has enjoyed a great deal of renovation and investment in the last decade

New analysis for the Sunday Express shows how areas of the North are as productive as outer London.

The North as a whole lags behind London and the South-east when it comes to output but some northern regions outperform the national average.

Surprisingly, the cities tend to lag, not lead, the North in terms of economic growth.

Figures compiled by the think-tank IPPR North reveal gross value added (GVA) per hour worked, which is the official measure of productivity.

Areas such as Cheshire East hit a high at £31.90 per hour.

Cheshire West and Chester rates £30.13 and East Merseyside £28.91.

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Sunday Express figures show areas of the North are more productive than areas of London

These are among the most productive in the country.

The North’s major cities have reinvested themselves over the past 20 years and will only grow stronger as more powers are devolved

Ed Cox, IPPR North director

This compares with parts of outer London where GVA is between £29.84 and £30.82.

Speaking ahead of the publication of a report on the North later this week, Ed Cox, director at IPPR North, said: “These figures show how parts of the north can keep apace with some of the most prosperous and productive parts of the country, namely London and the South-east.

“The North’s major cities have reinvested themselves over the past 20 years and will only grow stronger as more powers are devolved. But our rural parts and areas between cities are also driving the Northern Powerhouse. They must also benefit from the Government’s focus on the North.

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George Osborne and David Cameron toured the North earlier in the year talking to small businesses

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The figures will come as no surprise to George Osborne, who coined the term 'Northern Powerhouse'

“There still a lot of work to be done but with devolution of powers and investment to all corners of the North, we know that northern prosperity will create national prosperity too.”

Chancellor George Osborne coined the phrase Northern Powerhouse in 2014, aiming to bring the north’s population of 15 million into a force to rival London and the South-east.